Forex Today: Yen stronger post-BOJ, ECB Draghi, EZ CPI eyed

The yen was the main market mover in today’s Asian session, which was dominated by risk-off sentiment triggered by growing uncertainty around Trump’s policies. We had plenty of macro news from Japan, but BOJ’s monetary policy decision and economic outlook hogged the limelight.

The BOJ kept the interest rates and the yield curve control target unchanged as widely expected, but extended the debt buying for the loan program by a year. The bank revised up the GDP forecasts, while leaving the inflation forecasts largely unchanged.

We have a busy economic calendar ahead, with the immediate focus on the BOJ presser, German retail sales data and ECB Draghi’s speech, which will be followed by the German jobs data and Eurozone flash CPI report. Also, the Eurozone revised GDP figures will be reported in the European session.

Later in the NA session, a slew of US economic data will be reported, including the CB consumer confidence, Chicago PMI and S&P/CS Composite-20 HPI y/y. While the Canadian GDP data will be also on the cards.           

Main topics in Asia

BOJ keeps policy unchanged, debt buying for loan programme extended

The Bank of Japan has decided to keep its monetary policy unchanged, maintaining the short-term interest rate target at -0.1%. 

BOJ keeps inflation forecasts unchanged, revises up GDP

In today's decision, the Bank of Japan has also updated its outlook on growth and inflation, with the former revised up marginally, while the latter sees no change against market expectations.

Trump fires acting Attorney General Yates

Livesquawk reports latest headlines on Trump, citing that the US President has fired acting US Attorney General (AG) Sally Yates.

Goldman Sach’s CEO Blankfein: We don't support Trump travel order

In a sharply worded message to staff, Goldman Sachs CEO Lloyd Blankfein broke with the Trump administration over its controversial attempt to crack down on immigration, BBG reports.

Key focus for the day ahead

EUR/USD re-takes 1.0700 ahead of ECB Draghi

The EUR/USD pair is now looking to extend gains once again above 1.07 handle, as the US dollar runs into offers across the board amid renewed weakness in the US treasury yields.

GBP to trade soft amid elevated political uncertainty – ING

Analysts at ING offer a sneak peek into the trading outlook for sterling in the week ahead.

US: Key Events ahead - Nomura

Analysts at Nomura take us through a series of economic events from the US docket lined up for release later in the NA session today.

NZD/USD firmer, eyes multi-week tops ahead of NZ jobs

The New Zealand dollar extends its bullish momentum versus its American counterpart for the third straight session today, now the NZD/USD pair further towards twelve-week highs reached last week at 0.7317.